contestada

You are considering purchasing a $2,000,000, 200-day issue of commercial paper with a 4% discount yield. Calculate the effective yield, assuming the security is purchased on the issue date and held to maturity:
A. 3.33%
B. 4.12%
C. 4.19%
D. 4.23%
You are considering purchasing a $2,000,000, 200-day issue of commercial paper with a 4% discount yield. Calculate the dollar amount of the discount.
A. $40,000
B. $43,836
C. $44,444
D. $45,555